Significant check lists on various issues relating to handling of search & assessment of search cases
Leading case laws on significant issues I-73
Frequently Asked Questions (FAQs) I-105
List of cases I-121 1 SEARCH AND SEIZURE - NATURE OF PROVISIONS
3.1
3.2
AUTHORIZATION OF SEARCH
4.4 EVIDENTIARY
5.1
5.4
5.11
8.1
RECORDING OF STATEMENT - SECTION 132(4)
8.12
8.15
10.6 ILLEGAL RETENTION OF BOOKS OF ACCOUNT OR OTHER
10.7 I. SECTION 132(10) - APPROVAL FOR EXTENSION TO RETAIN BOOKS OF ACCOUNT OR OTHER DOCUMENT BY COMMISSIONER ETC. - OBJECTION BY ASSESSEE
132(9)
10.12 WHETHER INSPECTION OF BOOKS OF ACCOUNT OR OTHER DOCUMENTS IS PERMISSIBLE TO AN EMPLOYEE?
III. SECTION 132(9A) - HANDING OVER OF SEIZED BOOKS OF ACCOUNT OR DOCUMENTS AND ASSETS TO THE ASSESSING OFFICER
10.17 NOT HANDING OVER THE SEIZED MATERIAL WITHIN SIXTY DAYS - CONSEQUENCES THEREOF
10.18 SCOPE OF HANDING
10.18A INCORPORATION OF SUB-SECTIONS (9B), (9C) AND (9D)POWER OF PROVISIONAL ATTACHMENT OF PROPERTY AND TO MAKE REFERENCE TO VALUATION OFFICER BY THE AUTHORIZED OFFICER
APPLICATION AND RELEASE OF DISCLOSED
11.9 ILLEGAL SEIZURE BY OTHER GOVERNMENT AUTHORITY/ OFFICER
BLOCK ASSESSMENT SCHEME OF SEARCH CASES AS INTRODUCED BY THE FINANCE (NO. 2) ACT, 2024
11A.1 BACKGROUND
11A.2 TEXT OF SECTIONS 158B TO 158BI
11A.3 MEMORANDUM EXPLAINING THE PROVISIONS OF CHAPTERXIV-B OF THE FINANCE (NO. 2) BILL, 2024
11A.4 SUMMARY OF ASSESSMENT SCHEME RELATING TO SEARCH CASES AT DIFFERENT POINT OF TIME
11A.5 BLOCK ASSESSMENT IN THE CASE OF SEARCH
11A.6
12.2 MEMORANDUM EXPLAINING THE PROVISIONS OF THE FINANCE BILL, 2021 469
12.3 MEMORANDUM EXPLAINING THE PROVISIONS OF THE FINANCE BILL, 2022 473
12.4 MEMORANDUM EXPLAINING THE PROVISIONS OF THE FINANCE BILL, 2023 476
12.5 SALIENT FEATURES OF THE AMENDMENTS RELATING TO ASSESSMENT OR REASSESSMENT OF SEARCH CASES 478
12.6 SIGNIFICANT ISSUES EMERGING OUT OF NEW ASSESSMENT OR REASSESSMENT PROVISIONS OF SEARCH CASES 484
12.5 RELEVANCE OF JURISPRUDENCE DEVELOPED WITH RESPECT TO REOPENING OF ASSESSMENT UNDER THE OLD LAW CONTAINED IN SECTIONS 147-151 & 153A-153D TO THE NEW SCHEME OF ASSESSMENT OR REASSESSMENT IN SEARCH CASES
ASSESSMENT OF SEARCH CASES UNDER SECTION 153A/153C
A. SECTION 153A - ASSESSMENT IN CASE OF SEARCH OR REQUISITION 13.1 TEXT
509E
509E 509F
509G
509H
509-I
509J
509L
(
C. SECTION 153D - PRIOR APPROVAL OF JOINT COMMISSIONER 13.17
13.25 EXCLUSION OF TIME PERIOD IN CERTAIN CIRCUMSTANCES
13.26 EXTENSION OF TIME LIMIT DUE TO COVID-19 671
(b) SECTION 153 - TIME LIMIT FOR COMPLETION OF ASSESSMENT OF SEARCH CASES INITIATED ON OR AFTER 1ST APRIL 2021
HANDLING OF ASSESSMENT IN SEARCH CASES
14.1 CERTAIN STEPS/TECHNIQUES WHICH MAY BE USEFUL TO THE ASSESSEE DURING ASSESSMENT OF SEARCH CASES
14.2 TOOLS AVAILABLE WITH ASSESSING OFFICER DURING ASSESSMENT OF SEARCH CASES
14.5
15
ATTRACTION OF WEALTH TAX IN SEARCH CASES
15.1 TEXT OF SECTION 742
15.2 LEGISLATIVE HISTORY 750 15.3 OBJECTIVE 751
15.4 SIMILARITIES BETWEEN THE PROVISIONS UNDER BOTH THE ACTS 751
15.5 WHY IS THERE A SEPARATE PROVISION UNDER THE WEALTH-TAX ACT? 752
15.6 ASSETS ON WHICH WEALTH-TAX IS LEVIABLE 753
15.7 USE OF THE PHRASE “DISPROPORTIONATE TO HIS KNOWN ASSETS” 753
15.8 COLLECTION OF EVIDENCES 753
15.9 SEIZURE OF ASSETS FOR EVASION OF WEALTH-TAX 754
16
PENALTIES AND PROSECUTION IN SEARCH CASES
16.1 INTRODUCTION - PENALTY FOR CONCEALMENT OF INCOME IN SEARCH CASES 755
16.2 PENALTY PROVISION UNDER SECTION 271AAA/271AAB 756
16.3 TEXT OF SECTIONS 271AAA AND 271AAB 756
16.4 LEGISLATIVE HISTORY - SIGNIFICANT AMENDMENTS 760
16.5 OBJECTIVE 761
16.6 RATIONALE OF THE PROVISIONS OF SECTION 271AAA/ 271AAB 762
16.7 NATURE AND SCOPE OF PENALTY PROVISION UNDER SECTION 271AAA 763
16.8 PROVISION OF SECTION 271AAA IN NUTSHELL
16.9 IMMUNITY FROM PENALTY UNDER SECTION 271AAAMANNER OF DECLARATION
16.9A NATURE AND SCOPE OF PROVISION UNDER SECTION 271AAB 781
16.10 PENALTY UNDER SECTION 271AAA/271AAB v . PENALTY UNDER SECTION 271(1)(c)
16.11 PENALTY FOR UNDISCLOSED INCOME RELATING TO EARLIER YEARS
5A
16.12 TEXT OF EXPLANATION 5A TO SECTION 271(1)(c) 803
16.13 RATIONALE FOR INSERTION OF EXPLANATION 5A TO SECTION 271(1)(c) 804
Explanation 5A c
16.14 PROVISION OF SECTION 271AAA/271AAB AND EXPLANATION 5A TO SECTION 271(1)(c) NOT APPLICABLE TO REQUISITION MADE UNDER SECTION 132A 809
16.15 NEW PENALTY PROVISION UNDER SECTION 270A MADE APPLICABLE WITH EFFECT FROM A.Y. 2017-18 IN PLACE OF SECTION 271(1)(c) 810 814 Explanation 5A c 815
16.16 MISCELLANEOUS 815
16.17 ATTRACTION OF PENALTY FOR CONCEALMENT IN CASES COVERED U/S 153C
16.17A PENALTY PROVISION RELATING TO SEARCH INITIATED BEFORE 1ST JUNE, 2007 - EXPLANATION 5 TO SECTION 271(1)(c)
“take into account any information derived from the inventories prepared in consequence of the search and seizure made u/s 132 of the Income-tax Act and impugned in the present case”.
H.L. Sibal CIT
Harmel Singh Union of India “existence of relevant material for taking action u/s 132 is a condition precedent for the exercise of powers”
Chemitex Union of India
Kusum Lata CIT
Dr. Partap Singh Director of Enforcement
CIT Dr. Nandlal Tahiliani
(i) Circumstances when search is held to be valid ` Babu Lal DIT (Inv.)
Bandel Traders (P.) Ltd. Union of India
Kamal Khosla DIT (Investigation)
Mamchand & Co. CIT Subir Roy S.K. Chattopadhyay
Jai Bhagwan Om Parkash Director of InspectionDr. P.G. Viswanathan DIT (Inv.) -
V. Muthulakshmi DIT (Inv.)
K. Viswanathan alias Kumar DIT (Inv.)
Dr. Aruna Viswanathan DIT (Inv.)
Dr. Anjana Viswanathan DIT (Inv.)
Dr. Vikram Viswanathn DIT (Inv.) -
Emaar Alloys (P) Ltd. DGIT Inv & Ors. -
Para 4.1
Rajan Jewellery CIT
Subhash Sharma CIT
bona fide -
Kanjibhai Mandalia
Principal Director of IT (Inv.) Laljibhai
c
(ii) Circumstances when search is held to be invalid
Union of India Ajit
Jain
Dr. Nalini
Mahajan DIT (Investigation)
Vishwanath Prasad Asstt. CIT
Para 4.1
H.L. Sibal CIT
Madhu Gupta Director of IT (Inv.) -
Laljibhai Mandalia DGIT` -
Anand Swaroop CIT
Dipen
Para 4.1
LKS Bullion Import & Export (P.) Ltd. DGIT
Kanjibhai Mandalia Principal DITa
CIT Smt. Umlesh Goel
Laljibhai
Para 4.1
Principal Director of IT (Inv.) Laljibhai Kanjibhai Mandalia -
Mectec Director of IT (Inv.) s.
(iii) Allegation of mala fide or bias in searchbona fide mala fide -
Para 4.1
-
mala fide ipso facto Union of India
Vipan Kumar Jain
CIT
mala fideHindustan Metal Works
mala fide ITO Seth Bros.
S. Pratap Singh State of Punjab ‘malice’ -
E.P. Royappa State of Tamil Nadu
mala fide
Dr. Partap Singh Director of Enforcement
mala fide Express Newspapers (P.) Ltd. UOI
Para 4.1
Takshila
Educational Society DIT (Inv.)
4.2 Illegality of Search v. Irregularity during Search
Naraindas CIT -
ITO Seth Bros.
bona fide
Dr. Partap Singh Director of Enforcement
Balwant Singh R.D. Shah (Director of Inspection)
Para 4.2
(i) Delay in concluding search
i.e.
CIT Dr. C. Balakrishnan Nair
CIT S. K. Katyal inter alia
inter alia Dr. C. Balakrishnan Nair CIT
VLS Finance Ltd. CIT
i.e
(ii) Bona fide irregularity not fatal bona fide ITO Seth Bros. Lan Eseda Steels Ltd. Asstt. CIT
(iii) Seizure of irrelevant documents -
Para 4.2
Para 4.3
Pooran Mal Director of Inspection Lan Eseda Steels Ltd. Asstt. CIT
4.3 Illegal Search - Consequences
a.
b.
c.
d.
e. f.
g. -
DGIT Diamond Star Exports Ltd.
CIT Dr. Nandlal Tahiliani Kusum Lata CIT
Pooran Mal Director of Inspection
L.R. Gupta UOI
Union of India Ajit Jain
Rakesh Kumar Agarwal DGIT Khandani Shafakhana Union of India ITO U.K. Mahapatra & Co.
(i) Awarding costs against department
Saheli, A Women’s Resources Centre Commissioner of Police
Shri Ganesh Enterprises (P.) Ltd. UOI
Law Relating to Search & Seizure
AUTHOR : RAJ K. AGARWAL, RAKESH GUPTA
PUBLISHER
: TAXMANN
DATE OF PUBLICATION : SEPTEMBER 2024
EDITION : 10TH EDITION
ISBN NO : 9789364552370
NO. OF PAGES : 1244
BINDING TYPE : PAPERBACK
DESCRIPTION
Rs. 3,095
This book comprehensively analyses the legal, procedural, and practical aspects of search and seizure under the Income-tax Act, 1961, focusing on the new block assessment scheme effective from 1st September 2024. It provides a detailed commentary on procedural changes, implications, and contentious issues in the assessment of search cases, backed by landmark judgments from the Supreme Court, High Courts, and Tribunals.
Structured into detailed chapters, the book covers key topics such as the authorisation and conduct of search operations, seizure of assets, penalties, prosecutions, and practical challenges taxpayers face. It includes practical tools like FAQs, checklists, and model forms, making it a valuable resource for tax consultants, corporate executives, academicians, students, and tax administrators. The Present Publication is the 10th Edition and has been amended by the Finance (No. 2) Act, 2024. This book is authored by Dr Raj K. Agarwal & Dr Rakesh Gupta with the following noteworthy features:
• [Comprehensive Legal Analysis] Exhaustive coverage of search and seizure provisions, with a focus on Sections 153A to 153D, including historical context, objectives, and practical implications
• [Practical Guidance and Tools] Includes FAQs, checklists, and significant judgment summaries for practical advice and solutions
• [Latest Amendments Incorporated] Detailed analysis of amendments by the Finance (No. 2) Act, 2024, particularly on the new block assessment scheme
• [Balanced Discussion on Controversial Issues] Presents divergent views and professional opinions on various contentious matters, drawing from the authors' extensive experience
• [In-depth Examination of Assessment Procedures] Special focus on new assessment procedures in search cases, updated with recent amendments and their impact on the legal and practical handling of search and seizure
• [Supplementary Resources] Appendices include the Taxpayers' Charter, model forms, ground rules, and relevant legal sections, along with comparisons of international search and seizure laws
• [Guidance on Constitutional Validity and Safeguards] Discusses legal challenges, privacy concerns, and safeguards protecting taxpayer rights
